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2 Comments

Why doesn't Netflix raise it's prices?

Even if they tripled their prices at this point I would not stop purchasing it. I freaking love it. I guess Netflix isn't a SaaS business but it's still a business that has a subscription model. Why not play around with the pricing? I feel like the value delivered is much higher than 16 bucks a month.

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    This is just my guess but there's probably a very big percentage of people who pay for it but don't use it much as it's just seen as a basic expense. In this case they don't cost Netflix anything as they don't have to pay license views for watched content or bandwidth for streaming.

    If you raise the prices you only keep the hardcore fans that stream a lot and cost you a lot more money. This is similar to Spotify that wants to get into the podcast market as podcasts are not paid by stream like music. So the people subscribe and spend more time listening to podcasts: less license costs, more money for Spotify.

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    Any price rise for a service of that scale will cause people to reconsider. This is a field of theoretical analysis, where gains/losses are harder to predict. Sticking with a price for 2-3 years if possible is a safe bet.

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      This comment was deleted a year ago.

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